Why DO Insurance Is Vital for Nonprofits


Nonprofit organizations have unique insurance needs, but they also have many areas of coverage that broadly overlap with traditional for-profit companies. Among them is the need for a robust director’s & officer’s liability policy. In fact, it may be even more important for a nonprofit to have good D&O insurance than a for-profit business, due to limitations on the nonprofit sector when it comes to cash reserves and investments in passive income. So who do you trust for a good d&o policy? The answer is the same as for any other specialized form of coverage, you trust the people with experience evaluating organizations like yours and quoting coverage.

One Policy for All Your Key Personnel

D&O coverage is easier to manage when you have a single policy that covers all your directors and officers. This is achieved by defining annual policy maximums individually and collectively, to provide robust risk management without the cost of building and administrating a separate policy for every person who needs to be covered. As a result, your coverage is more cost-effective and it’s easier to find money in your budget to purchase the coverage you really need, so you aren’t stuck absorbing the cost damages through your operational budget. That protects your organization and your people.